Andhra Bank, Hyderabad V. Addl.CIT, Range-1, Hyderabad, Hyderabad

ITA 1491/HYD/2014

• Counselvise Citation: 149122514 RSA 2014
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-02-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 19-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: S ANANATHAN
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SMT.ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.1491/HYD/14 : ASSESSMENT YEAR 2009 - 10 ANDHRA BANK LIMITED, HYDERABAD (PAN AABCA 7375 C ) V/S. ADDL. COMMISSIONER OF INCOME - TAX RANGE 1, HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.ANANATHAN RESPONDENT BY : S HRI RAMAKRISHNA BANDI, DR DATE OF HEARING 2.2.2015 DATE OF PRONOUNCEMENT 4.2.2015 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : TH IS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) II, HYDERABAD DATED 26.6.2014, WHEREBY HE CONFIRMED THE INTEREST OF RS.65,54,448 CHARGED BY THE ASSESSING OFFICER UNDER S.234C OF THE INCOME TAX ACT,1961. 2. THE ASSESSEE IN THE PRESENT CASE IS A PSU BANK. IN THE ASSESSMENT COMPLETED UN D ER S.143(3) VIDE O R DER DATED 28. 12 .2011, INTEREST PAYABLE BY THE ASSESSEE UNDER S.234C WAS CALCULATED BY THE ASSESSING OFFICER, BY TAKING THE AMOUNTS OF ADVANCE TAX OF RS.49 - CRORES AND RS.200 - CRORES AS PAID BY THE ASSESSEE ON 16.6.2008 AND 16.3.2009 RESPECTIVELY. IN THIS REGARD, ASSESSEE MOVED AN APPLI C A T ION UN D ER S.154, SEEKING RECTIFICATION OF THE ORDER OF THE ASSESSING OFFICER ON THE GROUND THAT 15.6.2008 AND 15.3.2009, B E IN G BANK HOLIDAYS ON ACCOUNT OF SUN D AYS, THE PAYM E N T S MADE ON THE N E XT WORKING DAY S , VIZ. 16.6.2008 AND I TA NO. 1 49 1 /H YD/20 14 ANDHRA B ANK LIMITED, HYDERABAD 2 16.3.2009 RESPECTIVELY, SHOULD B E TAKEN AS PAYMENTS MADE IN TIME AND NO INT E REST UN D ER S.234C SHOULD B E CHARGED IN RESP E CT OF THESE PAYMENTS. RELIANCE IN SUPPORT OF T HI S STAND WAS ALSO PL A CED BY TH E ASSESSEE ON THE CBDT CIRCULAR NO. 676 ISSUED ON 14. 1.1994 AS WELL AS THE P R OVIS I ON S OF S.1 0 OF THE GENERAL CLAUSES ACT, 1897. THE ASSESSING OFFICER FOUND MERIT IN THE STAND TAKEN BY THE ASSESSEE AS RE G A R DS THE PAYMENT OF RS .49 CRORES MADE ON 16.6.2008 AS THE SAME WAS MADE BY PHYSICAL MEANS. ACCOR D INGLY, HE A LLOWED RELIEF TO THE ASSESSEE IN T ERMS OF L E VY OF INTEREST UN D ER S.234C BY TAKING THE DATE OF PAYM E NT O F AD V AN C E TAX OF RS.49 - CRORES AS 15.6.2008 IN S TEAD OF 16.6.2008. AS REGARDS THE OTHER PAYM E N T OF R S .200 - CRORES MADE ON 16.6.2009, H E NO T ED THAT THE SAID PAYMENT WAS MADE BY TH E ASSESSEE TH R OUGH SBH INTERNET B ANKING, WHICH OPERATES 24 - X - 7 R OUND THE Y E AR . HE HELD THAT 15.3.2009 ITSELF WAS NO T A HO LI D A Y FOR SBH I NTERNET B ANKING AND THE PAYMENT OF RS. 200 - CRORES MADE BY TH E ASSESSEE TOWARDS AD V ANCE TAX ON 16.3.2009 THROUGH SBH INTERNET BAN K IN G COULD NOT BE TREATED AS MADE ON 15.3.20 0 9 AS NEI T H E R THE CIRCULAR NO.676 (SUPRA) ISSUED BY THE CBDT NOR S.10 OF THE GENERAL CLAUSES ACT 1897 WAS APPLICABLE IN THE CASE OF PAYMENT MADE THROUGH INTERNET BANKING. HE ACCORDINGLY REJECTED THE REQUEST OF T HE ASSESSEE FOR MODIFICATION OF HI S ASSESSMENT O RDER ON THE ISSUE O F LEVY OF INTEREST UN D ER S.234C INSOFAR AS IT WAS CONCERN E D WITH THE ADVANCE TAX PAYMENT OF RS.200 CRO R ES MADE ON 16.3.2009. 3. AGAIN S T THE OR DER PASSED BY THE ASSESSING OFFICER UN D ER S.154, AN APPEAL WAS PREFERRED BY TH E ASSESSEE BEFORE THE LEARNED CIT(A) AND THE SUBMI S SION S MADE BEFORE THE ASSESSING OFFICER WERE REITERATED ON BEHALF OF THE ASSESSEE BEFORE THE LEARNED CIT(A) IN SUPPORT OF ITS CLAIM THAT PAYMENT OF AD V ANCE TAX OF R S .200 CRO R ES MADE ON 16.3.20 0 9 SHOU L D BE TAKEN AS 15.3.2009 , A S PER THE CBDT CIRCULAR AS WELL AS TH E RELEVANT PROVISIONS OF TH E G E N E RAL C L A USES I TA NO. 1 49 1 /H YD/20 14 ANDHRA B ANK LIMITED, HYDERABAD 3 ACT. THE LEARNED CIT(A) DID NOT FIND MERIT IN TH E STAND OF THE ASSESSEE TAKEN ON THIS ISSUE FOR THE SAME REASONS AS GIVEN BY THE ASSESSING OFFICER AND UPHELD THE ACTION OF THE ASSESSING OFFICER IN CHARGING INTEREST UN D ER S.234C BY TAKING THE DATE OF PAYMENT OF AD V ANCE TAX OF R S .200 CORES AS 16.3.2009. AGGRIEVED BY THE O R DER OF THE LEARNED CIT(A), ASSESSEE HAS P R EFERRED HIS APPEAL B E FORE US. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. IN SUPPORT OF ITS CL A IM THAT THE PAYMENT OF A D VANCE TAX OF RS.2 00 - CRO R ES MADE ON 16.3.009 SHOULD B E TAKEN AS PAID ON 15.3.2009 FOR THE PU R PO S ES OF C A L C ULA T ING INTEREST PAYABLE UN D ER S.234C, THE ASSESSEE HAS RELIED ON CBDT CIRCUL A R NO.676 ISSUED ON 14.1.1994. AT THE TIME OF HEARING BEFORE US, THE LEARNED COUNSEL FOR T HE ASSESSEE HAS PLACE D ON RECORD A COPY O F TH E SAID C IRCULAR WHICH READS AS UN D ER - 1197. WHETHER, IN CASE LAST DAY FOR PAYMENT OF ANY INSTALMENT OF ADVANCE TAX IS DAY ON WHICH RECEIVING BANK IS CLOSED, ASSESSEE CAN MAKE PAYMENT ON NEXT IMMEDIATELY FOLLOWING WORKING DAY, AND IN SUCH CASES MANDATORY INTEREST LEVIABLE UNDER SECTIONS 234B AND 234C WOULD NOT BE CHARGED 1. REPRESENTATIONS HAVE BEEN RECE IVED BY THE BOARD SEEKING WAIVER OF INTEREST CHARGEABLE UNDER SECTIONS 234B AND 234C OF THE INCOME - TAX ACT, 1961 FOR DEFAULT IN PAYMENT OF INSTALMENTS OF ADVANCE TAX BY THE DUE DATES WHICH ARE PRESCRIBED UNDER SECTION 211 OF THE INCOME - TAX ACT. IN CASES WH ERE THE LAST DATE FOR MAKING PAYMENT OF SUCH INSTALMENTS ( I.E., 15TH SEPTEMBER, 15TH DECEMBER AND 15TH MARCH) HAPPENS TO BE A HOLIDAY AND THE ASSESSEE PAYS THE DUE AMOUNT OF ADVANCE TAX ON THE NEXT WORKING DAY. 2. THE MATTER HAS BEEN CAREFULLY CONSIDERED B Y THE BOARD AND IT IS FELT THAT IN SUCH CASES SECTION 10 OF THE GENERAL CLAUSES ACT, 1897 WILL BE APPLICABLE. THIS SECTION LAYS DOWN THAT WHERE ANY ACT OR PROCEEDING IS DIRECTED OR ALLOWED TO BE DONE OR TAKEN IN ANY COURT OR OFFICE ON A CERTAIN DAY OR WITH IN A PRESCRIBED PERIOD, THEN, IF THE COURT OR OFFICE (IN THE PRESENT CASE THE BANK WHICH IS AUTHORISED TO RECEIVE PAYMENT OF ADVANCE TAX FROM THE ASSESSEE) IS CLOSED ON THAT DAY OR ON THE LAST DAY OF THE PRESCRIBED PERIOD, THE ACT OR PROCEEDING SHALL BE CO NSIDERED AS DONE OR TAKEN IN DUE TIME AFTER IT IS DONE OR TAKEN ON THE NEXT DAY, AFTERWARDS, ON WHICH THE COURT OR OFFICE (OR THE BANK) IS OPEN. IN VIEW OF I TA NO. 1 49 1 /H YD/20 14 ANDHRA B ANK LIMITED, HYDERABAD 4 THIS PROVISION, IT IS HEREBY CLARIFIED THAT IF THE LAST DAY FOR PAYMENT OF ANY INSTALMENTS OF ADVANC E TAX IS A DAY ON WHICH THE RECEIVING BANK IS CLOSED, THE ASSESSEE CAN MAKE THE PAYMENT ON THE NEXT IMMEDIATELY FOLLOWING WORKING DAY, AND IN SUCH CASES, THE MANDATORY INTEREST LEVIABLE UNDER SECTIONS 234B AND 234C OF THE INCOME - TAX ACT, 1961 WOULD NOT BE CHARGED.' 5. IN THE PRESENT CASE, THE PAYMENT OF ADVANCE TAX IN QUESTION WAS MADE BY THE ASSESSEE TO STATE BANK OF HYDERABAD AND SIN C E THE SAID BANK WAS CLOSED ON 15.3.2009, BEING HOLIDAY ON ACCOUN T OF SUNDAY, THE ASSESSEE I S CLAIMING THAT THE PAYMENT MADE ON 16.3.2009 SHOULD BE TREATED AS PAYM E N T MADE ON 15.3.2009 FOR THE PU R PO S E O F CALCULATING INTEREST UN D ER S.234C. THE LEARNED DEPARTMENTAL REPRESENTATIVE , ON TH E OTHER HAND , HAS SUPPO R TED THE ORDERS OF THE AUTHORITIES BEL OW ON THIS ISSUE , BY SUBMITTING THAT THE PAY M ENT IN QUESTION HAVING BEEN MADE BY TH E ASSESSEE THROUGH IN T ERNET BANKING, WHICH OPERATES 24 X 7 ROUN D THE Y EA R , THERE IS NO QUESTION OF B A NK BEING CLOSED ON 15.3.2009 AND THE BENEFIT OF CIR C ULAR NO.676 IS S UED BY THE CBDT IS NOT AVAILABLE TO THE ASSESSEE . WE FIND IT DIFFICULT TO ACCEPT THE STAND OF THE DEPARTM E NT. IT IS OBSERVED T H A T THERE IS NOTHING IN THE CBDT CIR C ULAR NO.676 TO SHOW OR EVEN TO IN D I C ATE THAT THE BENEFIT O F THE SAME DEPENDS ON TH E MO D E OF PAY M E NT. NO DOUBT, THE SAID C IRCULAR WAS ISSUED IN JANUARY, 2009, WHEN THE FACILITY OF MAKING PAYMENT OF TAX THROUGH IN T ERNET BANKING WAS NOT AVAILABL E, AS RIGHTLY CONTENDED BY THE LEARNED DEPARTMENTAL REPRESENTATIVE. I T IS , HO W EVER, ALSO TRUE THAT THE SAID CIR C ULAR HAS NO T B EE N MO DI FIED BY TH E CBDT MAKING IT CL E AR THAT THE B ENEFIT GIVEN BY TH E SAID C IRCULAR IS NOT AVAILABLE IN THE CA S E OF PAYM E N T O F TAX MADE TH R OUGH INTERNET BANKING. IN TH E ABSENCE OF ANY SUCH MODIFICATION OR CLARIFICATION, WE ARE O F THE VIEW THAT THE BENEFIT OF CIR C ULAR NO.676 DATED 14.1.1994 READ WITH THE PROV I SION S OF GEN E RAL CLAUSES A C T, 1897, IS APPLICABLE EVEN IN CA S E WHERE THE PAYM E N T O F ADVANCE TAX IS MADE THROUGH INTERNET BANKING AND AC C OR D INGLY, THE P A YM E NT IN QUESTION MAD E BY THE ASSESSEE ON ACCOUNT OF ADVANCE TAX AS ON 16.3.2 0 09 HAS TO B E I TA NO. 1 49 1 /H YD/20 14 ANDHRA B ANK LIMITED, HYDERABAD 5 CON S I DE RED AS PAYMENT MADE ON 15.3.2009 FOR THE PU R PO S E O F COMPUTING INTEREST LEVIABLE UN D ER S.234C , A S THE RECEIVING BANK, I.E. STATE BANK OF HYDERABAD , WAS CLOSED ON 15.3.2009, B E IN G H OLIDAY ON AC C OUN T O F SUN D AY. WE , THEREFORE, SET ASIDE THE IMPUGNED ORDER OF THE LEARNED CIT(A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO RECOMPUTE THE INTEREST LEVIABLE ON THE ASSESSEE UNDER S.234C OF THE ACT. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 4 THE FEBRUARY , 2015 SD/ - S D/ - ( ASHA VIJAYARAGHAVAN ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER D T/ - 4TH FEBRUARY, 201 5 COPY FORWARDED TO: 1. ANDHRA BANK LIMITED, PHATTABHI BHAVAN, SAIFABAD, HYDERABAD 2 . ADDL . COMMISSIONER OF INCOME - TAX, RANGE I , HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) II HYDERABAD 4. COMMISSIONER OF INCOME - TAX I, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S